Experiencing MIS 10th by m kronenke chapter 08

Using MIS
10

th

Edition

Chapter 8
Social Media Information Systems

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“In a mixed-reality environment we can create anything”

• Find ways to make ARES profitable.
• Traditionally banner ads, pop-ups, and short videos generate ad revenue.
• Mixed-reality apps allow developers to create anything, replace anything, and alter
anything.

– Virtual 60-foot prehistoric megalodon shark
– Virtual 40-foot power bar
– Overlay virtual objects over reality

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ARES Application Prototype

• Users can cycle with friends virtually.
– Unsure how many users it can support.
– Think about details of how system will function before estimating development costs or
project timeline.

• Generating revenue from social media applications difficult.
• Think about ways to apply new, emerging technology to accomplish business
organizational strategies.

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Study Questions
Q8-1 What is a social media information system (SMIS)?
Q8-2 How do SMIS advance organizational strategy?
Q8-3 How do SMIS increase social capital?
Q8-4 How do (some) companies earn revenue from social media?
Q8-5 How do organizations develop an effective SMIS?
Q8-6 What is an enterprise social network (ESN)?
Q8-7 How can organizations address SMIS security concerns?
Q8-8 2027?

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Social Media Information System (SMIS)
Q8-1 What is a social media information system (SMIS)?
Social media (SM)

IT for sharing content among networks of users.
Enables communities of practice.
People related by a common interest.
Social media information system (SMIS)

Sharing content among networks of users.

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Convergence of Many Disciplines
Q8-1 What is a social media information system (SMIS)?

Figure 8-1 Social Media Is a Convergence of Disciplines

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Number of Social Media Active Users
Q8-1 What is a social media information system (SMIS)?

Figure 8-2 Number of Social Media Active Users

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Three SMIS Roles
Q8-1 What is a social media information system (SMIS)?
Social Media Providers

Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest platforms.
Attracting, targeting demographic groups.
Users

Individuals and organizations.
Communities

Mutual interests that transcend familial, geographic, and organizational boundaries.

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SM User Communities
Q8-1 What is a social media information system (SMIS)?

Figure 8-3 SM Communities

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Social Media Application Providers
Q8-1 What is a social media information system (SMIS)?
Facebook, Twitter, LinkedIn, Google …
May charge fee, depending on application and purpose.

Free company page on Facebook, but ...
Fee to advertise to communities that “Like” that page.
Internal SM using SharePoint for wikis, discussion board, photo sharing.

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Five Components of SMIS
Q8-1 What is a social media information system (SMIS)?

Component

Role

Description

Social media providers

Elastic, cloud-based servers

Users and communities

Any user computing device

Social media providers

Application, NoSQL or other DBMS, Analytics

Users and communities

Browser, IOS, Android, Windows 10, and other applications

Social media providers

Content and connection data storage for rapid retrieval

Users and communities

User-generated content, connection data

Social media providers

Run and maintain application (beyond the scope of this text)

Users and communities

Create and manage content, informal, copy each other

Social media providers

Staff to run and maintain application (beyond the scope of this text)

Users and communities

Key users, adaptive, can be irrational

Hardware

Software

Data

Procedures

People

Figure 8-4 Five Components of SMIS

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SMIS Is Not Free
Q8-1 What is a social media information system (SMIS)?
Costs to develop, implement, manage social networking procedures.
Direct labor costs.
96% of companies use social media to recruit employees.

76% of recruiters say they view details about volunteer work on social media sites positively
SM posts with spelling mistakes or poor grammar were viewed negatively by 72% of respondents

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SMIS and Organizational Strategy
Q8-2 How do SMIS advance organizational strategy?
Strategy determines value chains,

Value chains determine business processes.
Processes determine SMIS requirements.
How do value chains determine dynamic processes?

Dynamic process flows cannot be designed or diagrammed.
SM fundamentally changes balance of power among users, communities, and organizations.

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SM in Value Chain Activities
Q8-2 How do SMIS advance organizational strategy?

Activity
Sales and marketing

Focus
Outward to prospects

Dynamic process

Risks

Social CRM

Loss of credibility

Peer-to-peer sales

Bad PR

Customer service

Outward to customers

Peer-to-peer support

Loss of control

Inbound logistics

Upstream supply chain providers

Problem solving

Privacy

Outbound logistics

Downstream supply chain shippers

Problem solving

Privacy

Manufacturing and operations

Outward for user design;

User-guided design

Efficiency/effectiveness

Inward to operations and manufacturing

Industry relationships
Operational efficiencies

Human resources

Employment candidates;

Employee prospecting, recruiting, and evaluation

Error

Employee communications

SharePoint for employee-to-employee

Loss of credibility

communication
Figure 8-5 SM in Value Chain Activities

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Social Media and the Sales and Marketing Activity
Q8-2 How do SMIS advance organizational strategy?
Dynamic, SM-based CRM process.
Social CRM

Customers craft own relationship.
Wikis, blogs, discussion lists, frequently asked questions, sites for user reviews and commentary, other dynamic content.
Customers search content, contribute reviews and commentary, ask questions, create user groups, etc.
Not centered on customer lifetime value.

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Social Media and Customer Service
Q8-2 How do SMIS advance organizational strategy?
Relationships emerge from joint activity, customers have as much control as companies.
Product users freely help each other solve problems.
Selling to or through developer networks most successful.

Microsoft's MVP program.
Peer-to-peer support risks loss of control.

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Social Media and Inbound and Outbound Logistics
Q8-2 How do SMIS advance organizational strategy?
Benefits

Numerous solution ideas and rapid evaluation of them.
Better solutions to complex supply chain problems.
Facilitates user-created content and feedback among networks needed for problem solving.
Loss of privacy

Open discussion of problem definitions, causes, and solution constraints.
Problem solving in front of your competitors.

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Social Media and Manufacturing and Operations
Q8-2 How do SMIS advance organizational strategy?
Improves communication channels within organization and externally with consumers, design products, develop supplier relationships, and operational efficiencies.
Crowdsourcing.
Businesses-to-consumer (B2C)
YouTube for posting videos of product reviews and testing, factory walk-throughs.
Yammer - enterprise social networking service.

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Social Media and Human Resources
Q8-2 How do SMIS advance organizational strategy?
Employee communications using internal personnel sites.

Ex: MySite and MyProfile in SharePoint.
Finding prospective employees, recruiting and evaluating candidates.
Place for employees to post their expertise.
Risks:

Forming erroneous conclusions about employees.
Pushing unpopular management message.

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Q3: How Do SMIS Increase Social Capital?
Q8-3 How do SMIS increase social capital?
Capital

Investment of resources for future profit.
Types of business capital

Physical capital: produce goods and services (factories, machines, manufacturing equipment).
Human capital: human knowledge and skills investments.
Social capital: social relations with expectation of marketplace returns.

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What Is the Value of Social Capital?
Q8-3 How do SMIS increase social capital?
Value of social capital

Number of relationships, strength of relationships, resources controlled.
Adds value in four ways

1.
2.
3.
4.

Information

Influence
Social credentials
Personal reinforcement

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How Do Social Networks Add Value to Businesses?
Q8-3 How do SMIS increase social capital?
Progressive organizations:

Have Facebook, LinkedIn, Twitter, other SN sites.
Encourage customers and interested parties to leave comments.
Risk – encouraging excessively critical feedback.
Klout score – measure of individual’s social capital.

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Using Social Networking to Increase the Number of Relationships
Q8-3 How do SMIS increase social capital?

Figure 8-6 Growing Social Networks

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Top YouTube Channels
Q8-3 How do SMIS increase social capital?

Monthly Views
Top 5 Beauty and Style Channels

Top 5 Food and Cooking Channels

Monthly Views

Est. Monthly

(millions)

Earnings

(millions)

Est. Monthly Earnings

Yuya

35.8

$41,476

CharlisCraftyKitchen

29.1

$127,777

grav3yardgirl

27.7

$32,292

Mosogourmet

22.9

$100,031

Zoella

23.5

$27,375

CookiesCupcakesandCardio

17.1

$79,309

Cute Girls Hairstyles

18.3

$21,078

How To Cook That

16.4

$77,773

Rclbeauty101

17.8

$20,960

MyCupcakeAddiction

13.5

$64,268

Figure 8-7 Top YouTube Channels
Source: Data from Nat Ives, “What a YouTube Celeb Pulls In,” Adage.com, April 15, 2016, accessed May 25, 2016, />
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Using Social Networks to Increase the Strength of Relationships
Q8-3 How do SMIS increase social capital?
Strength of a relationship

Likelihood other entity will do something that benefits your organization.
Positive reviews, post pictures using organization’s products or services, tweet about upcoming product releases, and so on.
Strengthen relationships by asking someone to do you a favor.
Frequent interactions strengthen relationships.

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